We hope the mentioned good practice case will encourage other governments and policymakers to do the same in their respective countries. Exhibitions and trade shows are the fastest of fast-tracks to economic recovery once the coronavirus crisis has passed and will deliver the best return on investment now. We sincerely thank UFI, EEIA, and EMECA for providing valuable information.
CASE STUDY: LATVIA
Latvia was one of the most aiding countries when it came to the meetings and exhibitions industry. Their financial aid helped the industry persevere.
EMERGENCY HELP
Expenditure measures:
On 23 March 2020, two Latvian support measures under the State aid Temporary Framework were launched. The schemes aim at enhancing the access to external financing for companies that are the most severely affected by the economic impact of the coronavirus outbreak: one is a loan guarantee scheme and the other a subsidised loan scheme.
On 29 May 2020, an €800,000 Latvian scheme to support tour operators that bore the costs of the repatriation of travellers in the context of the coronavirus outbreak was launched. The public support, which took the form of direct grants, is intended to cover the financial costs incurred by those operators for the repatriation to Latvia of travellers who were on holiday abroad in the course of the outbreak. The aid is channelled through the Latvian Consumer Rights Protection Centre. The purpose of the scheme is to mitigate the liquidity shortages that tour operators had to face due to the costs incurred to repatriate travellers and to help them progressively resume their activities during and after the outbreak.
RESTART HELP
Expenditure measures:
On 31 July 2020, a €19 million Latvian scheme to support tourism and events operators, which had to limit, suspend or cease their activities due to the emergency measures adopted in order to limit the spread of the coronavirus. The public support will take the form of direct grants and will amount to 30% of the mandatory state social security contributions paid by the beneficiary in 2019. Companies that have faced an income loss of at least 30% over one month during the period from April to June 2020, compared to the same month in 2019, will be eligible for aid under this scheme. In addition, the grants should be used for the remuneration of employees’ work. The aim of the measure is to facilitate access to finance and mitigate the sudden liquidity shortages that the affected companies are facing.
On 4 August 2020, the Commission approved a Latvian scheme with an estimated budget of €51 million, to support companies engaged in the export of goods and services in the context of the coronavirus outbreak. The financial support, which will take the form of direct grants, will cover up to 25% of the mandatory social security contributions paid by the beneficiaries. The scheme will benefit around 350 companies, and will be open to those with exporting activities active in all sectors. The purpose of the scheme is to address the liquidity needs of companies affected by the current crisis and to help them to continue their activities, start investments and maintain employment during and after the outbreak.
RECOVERY HELP
Expenditure measures:
On 17 December, the Commission approved a €70.8 million Latvian scheme to support companies affected by the coronavirus outbreak. The support, in the form of direct grants, is open to companies active in all sectors, excluding primary producers of agricultural products, public companies and financial institutions. The aim of the measure is to help beneficiaries counter the decrease in working capital in the context of the second wave of the coronavirus.
On 19 January 2021, the Commission approved a €5 million Latvian scheme to support organisers of cultural events who had to cancel announced public cultural events due to the restrictive measures implemented by the Latvian government to limit the spread of the coronavirus. The support, in the form of direct grants, aims to mitigate the sudden liquidity shortages that these companies are facing due to the coronavirus outbreak.
To find out more about Latvia’s aid scheme, click here.
